16 Aug 2016
MALAYSIA: New Incentives Aim to Boost Ship Building and Repair Sector
First-time investors in the ship building and repair sector will now qualify for a 70% tax exemption on statutory income for five years or a 60% tax allowance on qualifying capital expenditure (CAPEX) incurred within the first five years of operation. Alternatively, companies already active in the sector will be eligible for 60% investment tax allowance on any additional qualifying CAPEX incurred within five years.
The incentives form part of a government bid to boost Malaysia’s ship building and repair industry. By 2020, the government expects the industry to generate RM6.35 billion (US$1.58 billion) in gross national income, while also providing 55,000 jobs.